The biggest companies in the UK have seen their overall taxes go up by 19% since 2005, according to a new report published today.
The PwC report*, showed that despite a 17% fall in corporation tax between 2005 and 2012, other taxes had risen by 58%. The information, gathered from a survey of FTSE 100 finance directors, also showed that companies paid a total of £77.1bn in tax in 2012, 14.2% of total tax receipts.
A reduction in the rate of corporation tax, and the economic slowdown affecting the UK has led to a 17% drop in corporation tax payments, since 2005.
The news comes on the back of a government statement in which they announced their fiscal objective was to make the UK the most competitive tax system in the G20. However, there has been a rise in other business taxes, with VAT, employer’s National Insurance contributions and business rates having all risen.
The report went on to say, that in 2012, for every £1 of corporation tax paid, the Hundred Group participants paid another £2 in other business taxes.
Andrew Bonfield, Chairman of the Tax Committee of the Hundred Group, said:
“These latest results show the continued significant contribution of Hundred Group companies in the UK economy, despite the double dip recession.”
The news comes after recent controversy surrounding multinational companies such as Amazon, Google and Starbucks only paying minimal amounts of corporation tax.
*The full findings of the PwC report can be found here
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